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Item 2. Management’s Discussion and Analysis

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 
 
 In Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), “we,” “us” and “our” refer to Freeport-McMoRan Inc. (FCX) and its consolidated subsidiaries. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A and the discussion of our Business and Properties in our annual report on Form 10-K for the year ended December 31, 2024 (2024 Form 10-K), filed with the United States (U.S.) Securities and Exchange Commission (SEC). The results of operations reported and summarized below include forward-looking statements that are not guarantees of future performance and are not necessarily indicative of future operating results (refer to “Cautionary Statement” for further discussion). References to “Notes” are Notes included in our Notes to Consolidated Financial Statements (Unaudited). Throughout MD&A, all references to income or losses per share are on a diluted basis. Any references to our website are for information only and the contents of our website or information connected thereto are not incorporated in, or otherwise to be regarded as part of, this Form 10-Q. 
 
 OVERVIEW 
 
 We are a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, we operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. 
 
 We remain focused on providing metals essential for the economy and everyday life, while being vigilant in our efforts to reduce costs, improve efficiencies and carefully manage operating, administrative and capital spending in this uncertain macroeconomic environment. We believe we are well positioned for the future with large-scale production of copper, gold and molybdenum, with a highly qualified and experienced team with a proven track record, a portfolio of attractive organic growth opportunities and a strong balance sheet and financial position. 
 
 We are monitoring developments on U.S. trade policy for potential impacts on our business, cost structure and supply chains, and efforts are under way to evaluate alternative sourcing options to mitigate potential impacts. We are also monitoring potential indirect impacts of U.S. trade policy on economic growth and the potential for impacts on demand for copper. While the near-term impacts are uncertain, we believe the fundamental drivers for increased future demand for copper continue to be favorable, supported by substantial requirements for energy infrastructure, electrification and new technologies. 
 
 We are accelerating initiatives across our U.S. and South America operations by incorporating new applications, technologies and data analytics to our leaching processes. We continue to apply operational enhancements on a larger scale and test new innovative technology applications. We are targeting an annual run rate of 300 million pounds of copper by the end of 2025 from these initiatives and believe we have the potential for further significant increases in recoverable metal beyond the current target run rate. In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytics tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects. 
 
 Repairs to PT Freeport Indonesia’s (PTFI) new smelter in Eastern Java, Indonesia, following the October 2024 fire incident, are nearing completion. Startup activities are expected to re-commence in second-quarter 2025 with full ramp-up expected to be achieved by year-end 2025. In addition, PTFI continues to ramp-up production at its newly commissioned precious metals refinery (PMR) and the facility is expected to reach full capacity rates during 2025. Following the full ramp-up of the new smelter and PMR (collectively, PTFI’s new downstream processing facilities), PTFI’s mining and smelting operations will be fully integrated. 
 
 Net income attributable to common stockholders totaled $352 million in first-quarter 2025, compared with $473 million in first-quarter 2024. The decrease in first-quarter 2025 results, compared to first-quarter 2024, primarily reflects lower gold and copper sales volumes in Indonesia, partly offset by higher average realized prices for copper and gold. Refer to “Consolidated Results” for further discussion. For the remainder of 2025, we expect our quarterly consolidated sales volumes of copper and gold to increase from first-quarter 2025 levels, reflecting increased copper and gold volumes from Indonesia. 
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 At March 31, 2025, we had consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $4.4 billion, $4.6 billion including $0.3 billion of current restricted cash associated with a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation. Net debt totaled $1.5 billion, excluding $3.2 billion of debt for PTFI’s new downstream processing facilities. Refer to “Net Debt” for a reconciliation of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PTFI's export proceeds to net debt. 
 
 At March 31, 2025, we had $3.0 billion of availability under our revolving credit facility, and PTFI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities. 
 
 In first-quarter 2025, we acquired 1.4 million shares of our common stock for a total cost of $55 million ($39.10 average cost per share). As of April 30, 2025, we acquired a total of 51 million shares ($38.50 average cost per share) and have $3.0 billion available under our share repurchase program. 
 
 Refer to Note 4 and “Capital Resources and Liquidity” for further discussion of our debt and share repurchases. 
 
 OUTLOOK 
 
 Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets” below and “Risk Factors” in Part I, Item 1A. of our 2024 Form 10-K for further discussion. Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures. The forward-looking statements in the below section and elsewhere in this quarterly report on Form 10-Q are based on current market conditions, are as of the filing date of this quarterly report on Form 10-Q, are based on several assumptions and are subject to significant risks and uncertainties. Refer to “Cautionary Statement” below. 
 
 Consolidated Sales Volumes 
 Following are our projected consolidated sales volumes for the year 2025: 
 
 Copper (billions of recoverable pounds): 
 
 U.S. copper mines 1.3 
 South America operations 1.1 
 Indonesia operations 1.6 
 
 Total 4.0 
 
 Gold (millions of recoverable ounces) 
 1.6 
 
 Molybdenum (millions of recoverable pounds) 
 88 a 
 
 a. Includes 53 million pounds produced by our U.S. copper mines and South America operations and 35 million pounds produced by our Molybdenum mines. 
 
 For the remainder of 2025, we expect our quarterly consolidated sales volumes of copper and gold to increase from first-quarter 2025 levels reflecting increased copper and gold volumes from Indonesia. Consolidated sales volumes in second-quarter 2025 are expected to approximate 1.0 billion pounds of copper, 500 thousand ounces of gold and 22 million pounds of molybdenum. 
 
 Projected sales volumes are dependent on operational performance; the ramp-up of PTFI’s new downstream processing facilities; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below. For other important factors that could cause results to differ materially from projections, refer to “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K. 
 
 Consolidated Unit Net Cash Costs 
 For the remainder of 2025, we expect our consolidated average unit net cash costs to decline from first-quarter 2025 levels reflecting increased copper and gold volumes from Indonesia. Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”), consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average $1.50 per pound of copper for both the year 2025 and second-quarter 2025, based on achievement of current sales volume and cost estimates, and assuming average prices of $3,000 per 
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 ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025. Quarterly unit net cash costs vary with fluctuations in sales volumes, including the ratio of copper and gold sales within a period, and realized prices, primarily for gold and molybdenum. The impact of price changes on consolidated unit net cash costs for the remainder of 2025 would approximate $0.04 per pound of copper for each $100 per ounce change in the average price of gold and $0.02 per pound of copper for each $2 per pound change in the average price of molybdenum. 
 
 Consolidated Operating Cash Flows 
 Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”), consolidated operating cash flows are estimated to approximate $7.0 billion for the year 2025, including $0.2 billion of working capital and other sources, based on current sales volume and cost estimates, and assuming prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025. Estimated consolidated operating cash flows for the year 2025 also reflect a projected income tax provision of $2.8 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2025). The impact of price changes on consolidated operating cash flows for the remainder of 2025 would approximate $300 million for each $0.10 per pound change in the average price of copper, $140 million for each $100 per ounce change in the average price of gold and $100 million for each $2 per pound change in the average price of molybdenum. 
 
 As further discussed in "Markets," copper sales from our U.S. copper mines are generally based on prevailing Commodity Exchange Inc (COMEX) settlement price, which as of April 30, 2025, was 9% higher than the London Metal Exchange (LME) copper settlement price. We estimate the impact on operating cash flows of each $0.10 per pound premium in the COMEX settlement price, compared to the LME settlement price, for the remainder of 2025 would approximate $95 million ($135 million on an annualized basis). 
 
 Consolidated Capital Expenditures 
 Following is a summary of expected capital expenditures for the year 2025 (in billions): 
 
 Major mining projects $ 2.8 a 
 
 PTFI’s new downstream processing facilities 0.6 b 
 
 Sustaining capital and other 1.6 
 Total $ 5.0 

 a. Includes $1.1 billion for planned projects, primarily associated with underground mine development, supporting mill and power capital costs and a portion of spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and expansion projects in the U.S., and $1.7 billion for discretionary growth projects, primarily in the Grasberg minerals district for the continued development of Kucing Liar and at the Bagdad mine for tailings infrastructure. 
 b. Excludes capitalized interest, owner’s costs and commissioning. Capital expenditures for PTFI’s new downstream processing facilities are expected to be funded with PTFI’s cash flows from operations and availability under PTFI’s revolving credit facility. 
 
 We closely monitor market conditions and will adjust our operating plans, including capital expenditures, as necessary. 
 
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 MARKETS 
 
 Prices for copper, gold and molybdenum are affected by numerous factors beyond our control and can fluctuate significantly (for further discussion refer to “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K). The following graphs present the LME and COMEX copper settlement prices, the London Bullion Market Association (London) PM gold prices, and the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices since January 2015. 
 
 This graph presents LME and COMEX copper settlement prices and the combined reported stocks of copper at the LME, COMEX, and the Shanghai Futures Exchange from January 2015 through March 2025. 
 
 Copper sales from our South America and Indonesia operations are generally based on quoted LME monthly average copper settlement prices. During first-quarter 2025, LME copper settlement prices averaged $4.24 per pound (ranging from a low of $3.94 per pound to a high of $4.53 per pound) and was $4.39 per pound on March 31, 2025. The LME copper settlement price was $4.17 per pound on April 30, 2025. 
 
 Copper sales from our U.S. copper mines are generally based on prevailing COMEX monthly average copper settlement prices. During first-quarter 2025 COMEX copper settlement prices averaged $4.57 per pound (ranging from a low of $3.99 per pound to a record high of $5.22 per pound) and was $5.02 per pound on March 31, 2025. The COMEX copper settlement price was $4.56 per pound on April 30, 2025. 
 
 The recent spread between LME and COMEX copper prices, which widened during first-quarter 2025, is primarily driven by market expectations of a potential tariff on U.S. copper imports. 
 
 We believe fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence developments and growing connectivity globally. 
 
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 This graph presents London PM gold prices from January 2015 through March 2025. During first-quarter 2025, London PM gold prices averaged $2,860 per ounce (ranging from a low of $2,633 per ounce to a high of $3,115 per ounce) and was $3,115 per ounce on March 31, 2025. Economic uncertainty, geopolitical tensions and strong demand from central banks around the world continue to drive gold prices to record highs. The London PM gold price was $3,302 per ounce on April 30, 2025. 
 
 This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices from January 2015 through March 2025. During first-quarter 2025, the weekly average prices of molybdenum averaged $20.56 per pound (ranging from a low of $19.82 per pound to a high of $21.10 per pound) and was $20.01 per pound on 
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 March 31, 2025. Overall global demand for molybdenum is driven by energy, power generation, aerospace, defense and construction sectors. We believe fundamentals for molybdenum are positive with favorable demand drivers and limited supply. The Platts Metals Daily Molybdenum Dealer Oxide weekly average price was $19.71 per pound on April 30, 2025. 
 
 CONSOLIDATED RESULTS 
 
 Three Months Ended March 31, 
 2025 2024 
 SUMMARY FINANCIAL DATA 
 (in millions, except per share amounts) 
 Revenues a,b 
 $ 5,728 $ 6,321 
 Operating income a,c 
 $ 1,303 $ 1,634 
 
 Net income attributable to common stock b,c 
 $ 352 $ 473 d 
 
 Diluted net income per share of common stock b,c 
 $ 0.24 $ 0.32 d 
 
 Diluted weighted-average shares of common stock outstanding 1,444 1,444 
 
 Operating cash flows e 
 $ 1,058 $ 1,896 
 Capital expenditures 
 $ 1,172 $ 1,254 
 At March 31: 
 Cash and cash equivalents 
 $ 4,385 $ 5,208 
 Restricted cash and cash equivalents, current f 
 $ 460 $ 1,034 
 Total debt, including current portion 
 $ 9,404 $ 9,425 
 
 a. Refer to Note 8 for a summary of revenues and operating income by operating division. 
 b. Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $70 million ($24 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025 and $(7) million ($(2) million to net income attributable to common stock or less than $0.01 per share) in first-quarter 2024. Refer to Note 5 for further discussion. 
 c. We defer recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $114 million ($34 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025 and $(17) million ($(5) million to net income attributable to common stock or less than $0.01 per share) in first-quarter 2024. Refer to “Operations – Smelting and Refining.” 
 d. Includes net credits of $181 million associated with the settlement of historical PTFI tax matters, which were offset by charges of $109 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, $56 million of revisions to environmental obligation estimates and $31 million of inventory adjustments. 
 e. Working capital and other uses totaled $297 million in first-quarter 2025 and $97 million in first-quarter 2024. 
 f. Includes $0.3 billion at March 31, 2025 (expected to be released by mid-2025), and $0.9 billion at March 31, 2024, associated with a portion of PTFI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation. 
 
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 Three Months Ended March 31, 
 2025 2024 
 SUMMARY OPERATING DATA 
 Copper (millions of recoverable pounds) 
 
 Production 868 1,085 
 Sales, excluding purchases 872 1,108 
 Average realized price per pound $ 4.44 $ 3.94 
 
 Site production and delivery costs per pound a 
 $ 2.59 $ 2.32 
 Unit net cash costs per pound a 
 $ 2.07 $ 1.51 
 Gold (thousands of recoverable ounces) 
 
 Production 287 549 
 Sales, excluding purchases 
 128 568 
 Average realized price per ounce $ 3,072 $ 2,145 
 Molybdenum (millions of recoverable pounds) 
 
 Production 23 18 
 Sales, excluding purchases 
 20 20 
 Average realized price per pound $ 21.67 $ 20.38 
 
 a. Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit net cash costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.” 
 
 Revenues 
 Consolidated revenues totaled $5.7 billion in first-quarter 2025 and $6.3 billion in first-quarter 2024. Revenues from our mining operations and processing facilities primarily include the sale of copper cathode, copper in concentrate, copper rod, gold in concentrate and anode slimes, and molybdenum. Refer to Note 8 for a summary of product revenues. 
 
 Following is a summary of changes in our consolidated revenues between periods (in millions): 
 
 Three Months Ended March 31 
 
 Consolidated revenues - 2024 period $ 6,321 
 Lower sales volumes: 
 Copper (929) 
 Gold (944) 
 Molybdenum (11) 
 
 Higher average realized prices: 
 Copper 436 
 Gold 119 
 Molybdenum 26 
 Adjustments for prior period provisionally priced copper sales 77 
 Higher Atlantic Copper revenues 82 
 Higher revenues from purchased copper 152 
 
 Lower treatment charges 101 
 Lower royalties and export duties 153 
 Other, including intercompany eliminations 145 
 Consolidated revenues - 2025 period $ 5,728 
 
 Sales Volumes. Consolidated copper and gold sales volumes decreased in first-quarter 2025, compared to first-quarter 2024, primarily reflecting a planned major maintenance project in Indonesia. Lower gold sales volumes in first-quarter 2025, compared to first-quarter 2024, were also impacted by lower ore grades and the timing of shipments. 
 
 Realized Prices. Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. Our average realized prices in first-quarter 2025, compared with first-quarter 2024, were 13% higher for copper, 43% higher for gold and 6% higher for molybdenum. 
 
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 During first-quarter 2025, our average U.S. copper price realization, which is generally based on the COMEX settlement price, was approximately 6% higher than the average copper price realizations for our South America and Indonesia operations, which are based on the LME settlement price. 
 
 Average realized copper prices include net favorable adjustments to current period provisionally priced copper sales totaling $46 million in first-quarter 2025 and $73 million in first-quarter 2024. As discussed in Note 5, certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date). We record revenues and invoice customers at the time of shipment based on then-current LME prices for copper or London PM prices for gold, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper and gold prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper and gold prices, the opposite occurs. 
 
 Prior Period Provisionally Priced Copper Sales. Net favorable (unfavorable) adjustments to prior periods’ provisionally priced copper sales ( i.e. , provisionally priced sales at December 31, 2024 and 2023) recorded in consolidated revenues totaled $70 million in first-quarter 2025 and $(7) million in first-quarter 2024. Refer to Notes 5 and 8 for a summary of total adjustments to prior period and current period provisionally priced sales. 
 
 At March 31, 2025, we had provisionally priced copper sales totaling 204 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.40 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the March 31, 2025, recorded provisional price would have an approximate $18 million effect on 2025 revenues ($7 million to 2025 net income attributable to common stock). The LME copper price settled at $4.17 per pound on April 30, 2025. 
 
 Atlantic Copper Revenues. Atlantic Copper revenues totaled $755 million in first-quarter 2025 and $673 million in first-quarter 2024. Higher revenues in the first-quarter 2025, compared with first-quarter 2024, primarily reflect higher copper prices. 
 
 Purchased Copper. We purchase copper cathode primarily for processing by our Rod & Refining operations. The volumes of copper purchases vary depending on cathode production from our operations and totaled 66 million pounds in first-quarter 2025 and 42 million pounds in first-quarter 2024. 
 
 Treatment Charges. Revenues from our copper concentrate sales are recorded net of treatment charges ( i.e., fees paid to smelters that are generally negotiated annually), which will vary with the sales volumes and the price of copper. The decrease in treatment charges in first-quarter 2025, compared to first-quarter 2024, primarily reflects lower treatment charge rates and copper concentrate sales volumes in Indonesia and South America. 
 
 Export Duties and Royalties. Export duties, which totaled $55 million in first-quarter 2025 and $156 million in first-quarter 2024, are assessed on PTFI’s copper concentrate sales at a rate of 7.5%. Royalties are assessed on all PTFI copper and gold sales and vary with the sales volumes and metal prices. 
 
 Production and Delivery Costs 
 Consolidated production and delivery costs totaled $3.8 billion in first-quarter 2025 and first-quarter 2024. First-quarter 2025 included charges totaling $73 million associated with maintenance turnaround costs at the Miami smelter, and first-quarter 2024 included charges totaling $109 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies. 
 
 Site Production and Delivery Costs Per Pound. Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulfuric acid, steel, reagents, liners, tires and explosives. Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $2.59 per pound of copper in first-quarter 2025 and $2.32 per pound of copper in first-quarter 2024. Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash Costs (Credits)” for further discussion of unit net cash costs (credits) associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements. 
 
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 Depreciation, Depletion and Amortization 
 Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaling $466 million in first-quarter 2025 was lower than DD&A totaling $595 million in first-quarter 2024, primarily as a result of lower copper sales volumes. We currently expect that DD&A will approximate $2.6 billion for the year 2025, which will include amounts associated with capitalized costs for PTFI's new downstream processing facilities. 
 
 Environmental Obligations and Shutdown Costs 
 Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates. Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. Net adjustments resulting from revisions to long-term historical environmental obligations totaled $(7) million in first-quarter 2025 and $56 million in first-quarter 2024. 
 
 Interest Expense, Net 
 Consolidated interest costs (before capitalization) totaled $174 million in first-quarter 2025 and $175 million in first-quarter 2024. 
 
 Capitalized interest totaled $104 million in first-quarter 2025 and $86 million in first-quarter 2024. The increase in capitalized interest costs in first-quarter 2025, compared to first-quarter 2024, primarily related to mine development projects in the U.S. and PTFI’s new downstream processing facilities. Refer to “Capital Resources and Liquidity – Investing Activities” for discussion of capital expenditures associated with our major development projects. 
 
 Other Income, Net 
 Other income, net, which totaled $58 million in first-quarter 2025 and $129 million in first-quarter 2024, primarily includes amounts associated with interest income, currency exchange gains and losses, and mark-to-market impacts of trust assets used to satisfy financial assurance obligations for our New Mexico mining operations. Lower other income, net, in first-quarter 2025, compared to first-quarter 2024, primarily reflects lower interest income. First-quarter 2024 also included a credit of $26 million associated with the reduction in the accrual to indemnify PT Mineral Industri Indonesia (MIND ID) from potential losses arising from PTFI’s historical tax disputes. 
 
 Income Taxes 
 Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision (in millions, except percentages): 
 
 Three Months Ended March 31, 
 2025 2024 
 Income (Loss) a 
 Effective
Tax Rate Income Tax (Provision) Benefit Income (Loss) a 
 Effective
Tax Rate Income Tax (Provision) Benefit 
 U.S. b 
 $ (75) —% $ 2 $ (270) —% $ (1) 
 South America 495 39% (193) 267 39% (103) 
 Indonesia 795 36% (288) 1,627 36% (591) 
 
 PTFI historical tax matters — N/A — 16 c 
 N/A 182 c 
 
 Eliminations and other 76 N/A (42) 
 
 34 N/A — 
 Rate adjustment d 
 — N/A 21 — N/A 1 
 
 Consolidated FCX $ 1,291 39% $ (500) $ 1,674 31% $ (512) 
 
 a. Represents income before income taxes, equity in affiliated companies' net earnings and noncontrolling interests. 
 b. In addition to our U.S. copper and molybdenum mines, which had operating income of $317 million in first-quarter 2025 and $163 million in first-quarter 2024 (refer to Note 8), the U.S. jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with our senior notes and general and administrative expenses. The U.S. jurisdiction also includes net revisions to environmental obligation estimates and charges associated with oil and gas abandonment obligations and impairments. 
 c. Includes net credits associated with the closure of PTFI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters. 
 d. In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our consolidated tax rate. 
 
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 Assuming achievement of current sales volume and cost estimates and prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025, we estimate our consolidated effective tax rate for the year 2025 would approximate 39%. Changes in projected sales volumes and average prices during 2025 would incur tax impacts at estimated effective rates of 39% for Peru, 36% for Indonesia and 0% for the U.S. 
 
 Noncontrolling Interests 
 Net income attributable to noncontrolling interests, which is primarily associated with our noncontrolling shareholders at PTFI, Cerro Verde and El Abra, totaled $0.4 billion in first-quarter 2025 and $0.7 billion in first-quarter 2024 (refer to Note 8 for net income attributable to noncontrolling interests for each of our business segments). 
 
 Our economic and ownership interest in PTFI is 48.76%, except for net income associated with the settlement of historical tax matters in first-quarter 2024, which was attributed based on the economics prior to January 1, 2023 ( i.e. , approximately 81% to FCX and 19% to MIND ID). Refer to Note 2 of our 2024 Form 10-K for further discussion. 
 
 In September 2024, we increased our ownership interest in Cerro Verde to 55.08% from 53.56%. 
 
 Based on achievement of current sales volume and cost estimates, and assuming prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025, we estimate that net income attributable to noncontrolling interests will approximate $2.5 billion for the year 2025. The impact of price changes on net income attributable to noncontrolling interests for the year 2025 would approximate $0.2 billion for each $0.25 per pound change in the average price of copper for the remainder of 2025. The actual amount will depend on many factors, including relative performance of each business segment, commodity prices, costs and other factors. 
 
 OPERATIONS 
 
 Responsible Production 
 2024 Annual Report on Sustainability. In April 2025, we published our 2024 Annual Report on Sustainability, marking our 24th year of reporting on our progress. We are committed to building upon our achievements in sustainability and our position as a leading responsible copper producer. 
 
 The Copper Mark. We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry and extended to other metals, including molybdenum. To achieve the Copper Mark, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria. Awarded sites must be revalidated every three years. We achieved, and are committed to maintaining, the Copper Mark and Molybdenum Mark, as applicable, at all of our operating sites globally. 
 
 Technology and Leaching Innovation Initiatives 
 We are accelerating initiatives across our U.S. and South America operations by incorporating new applications, technologies and data analytics to our leaching processes. Incremental copper production from these initiatives totaled 214 million pounds for the year 2024 and 46 million pounds in first-quarter 2025. 
 
 We continue to apply operational enhancements on a larger scale and test new innovative technology applications. We are targeting an annual run rate of 300 million pounds of copper by the end of 2025 from these initiatives and believe we have the potential for further significant increases in recoverable metal beyond the current target run rate. Continued success with these initiatives would contribute to favorable adjustments in recoverable copper in leach stockpiles and positively impact average unit net cash costs. 
 
 In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytic tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects. We believe these technology and leaching initiatives are particularly important to our U.S. operations, which have lower ore grades. 
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 Feasibility and Optimization Studies 
 We are engaged in various studies associated with potential future expansion projects primarily at our mining operations. The costs for these studies are charged to production and delivery costs as incurred and totaled $36 million in first-quarter 2025, compared with $34 million in first-quarter 2024. We estimate the costs of these studies will approximate $250 million for the year 2025 (including approximately $55 million in second-quarter 2025), subject to market conditions and other factors. 
 
 Proposed U.S. Tariffs and Section 232 Investigation on Copper 
 Proposed U.S. Tariffs. We are monitoring developments on U.S. trade policy for potential impacts on our business, cost structure and supply chains. Based on our current supply chains and discussions with our suppliers, we estimate that the proposed tariffs announced to date, which continue to be assessed, could have the potential to increase the costs of goods we purchase in the U.S. by approximately 5%, primarily reflecting the potential pass-through of tariffs incurred by suppliers. Efforts are under way to evaluate alternative sourcing options to mitigate potential impacts. 
 
 We are also monitoring potential indirect impacts of U.S. trade policy on economic growth and the potential for impacts on demand for copper. While any near-term impact is uncertain, we believe the fundamental drivers for increased future demand for copper continue to be favorable, supported by substantial requirements for energy infrastructure, electrification and new technologies. 
 
 We continue to drive initiatives to improve our U.S. cost structure through efficiency programs, cost reduction initiatives and our leach innovation projects. 
 
 Section 232 Investigation on Copper. On February 25, 2025, the President issued an executive order, noting copper as a critical material essential to national security, economic strength and industrial resilience of the U.S. The executive order instructed the U.S. Secretary of Commerce to conduct an investigation under Section 232 of the Trade Expansion Act to determine the effects of copper imports on U.S. national security.
 
 The U.S. Secretary of Commerce is expected to submit a report to the President before the end of November 2025, including recommendations on potential tariffs, export controls or incentives to increase domestic production and policy recommendations to strengthen the U.S. copper supply chain, including permitting reforms. 
 
 We are the leading copper supplier in the U.S., providing approximately 70% of total U.S. refined copper production through our integrated domestic mining and processing facilities. We have several initiatives in progress to significantly expand our domestic production and support initiatives that would allow us to strengthen our U.S. copper production through potential permitting reforms and other incentives to domestic copper producers. 
 
 Copper imports are currently exempted from U.S. tariffs pending completion of the U.S. government’s Section 232 investigation. During first-quarter 2025, our U.S. average copper price realization from our U.S. mines, which is generally based on COMEX, was approximately 6% higher than our average copper price realizations for our South America and Indonesia operations, which are based on the LME. 
 
 United States 
 We manage seven copper operations in the U.S. – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. We also operate a copper smelter in Miami, Arizona. All of our U.S. operations are wholly owned, except for Morenci. We record our 72% undivided joint venture interest in Morenci using the proportionate consolidation method. 
 
 Our U.S. copper operations include open-pit mining, sulfide-ore concentrating, leaching and solution extraction/electrowinning (SX/EW) facilities. A majority of the copper produced at our U.S. copper operations is cast into copper rod by our Rod & Refining segment. The remainder of our U.S. copper production is sold as copper cathode or copper concentrate, a portion of which is shipped to Atlantic Copper (our wholly owned smelter and refinery in Spain). Molybdenum concentrate, gold and silver are also produced by certain of our U.S. copper operations . 
 
 Development Activities. We have substantial reserves, resources and future opportunities for organic growth in the U.S. associated with existing operations. Several initiatives are under way to target anticipated future growth in U.S. copper supply. 
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 We have a potential expansion project to more than double the concentrator capacity of the Bagdad operation in northwest Arizona. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. In late 2023, we completed technical and economic studies, which indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year at estimated incremental project capital costs of approximately $3.5 billion. Expanded operations would provide improved efficiency and reduce unit net cash costs through economies of scale. Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and approximately three to four years to complete. 
 
 To support these future expansion plans, we are completing a project to convert Bagdad’s haul truck fleet to fully autonomous, enhancing local infrastructure and expanding tailings facilities. The decision on and timing of the potential expansion will take into account overall copper market conditions and other factors. 
 
 We are advancing pre-feasibility studies in the Safford/Lone Star district to define a potential significant expansion opportunity. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further expansion project. We expect to complete these studies in 2026. The decision on and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors. 
 
 Operating Data. Following is summary consolidated operating data for our U.S. copper mines: 
 
 Three Months Ended March 31, 
 
 2025 2024 
 Operating Data, Net of Joint Venture Interests 
 Copper (millions of recoverable pounds) 
 
 Production 301 314 
 Sales, excluding purchases 307 331 
 Average realized price per pound a 
 $ 4.60 $ 3.96 
 
 Molybdenum (millions of recoverable pounds) 
 
 Production b 
 8 7 
 
 100% Operating Data 
 Leach operations 
 Leach ore placed in stockpiles (metric tons per day) 583,700 617,400 
 Average copper ore grade (%) 0.20 0.21 
 Copper production (millions of recoverable pounds) 191 211 
 
 Mill operations 
 Ore milled (metric tons per day) 321,900 307,600 
 Average ore grade (%): 
 Copper 0.29 0.32 
 Molybdenum 0.02 0.02 
 Copper recovery rate (%) 84.1 81.0 
 Copper production (millions of recoverable pounds) 154 153 
 
 a. As discussed above, our average U.S. copper price realization, which is generally based on COMEX settlement prices, was approximately 6% higher in first-quarter 2025 than the average copper price realizations for our South America and Indonesia operations, which are based on LME settlement prices. 
 b. Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at our U.S. copper mines. 
 
 Our consolidated copper sales volumes from U.S. mines of 307 million pounds in first-quarter 2025 were lower than first-quarter 2024 copper sales volumes of 331 million pounds, primarily reflecting lower leach production and the timing of shipments in first-quarter 2024. Consolidated copper sales from our U.S. mines are estimated to approximate 1.3 billion pounds for the year 2025. Refer to “Outlook” for projected molybdenum sales volumes. 
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 Unit Net Cash Costs. We believe unit net cash costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with generally accepted accounting principles (GAAP) in the U.S. and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 
 
 Gross Profit per Pound of Copper and Molybdenum 
 The following table summarizes unit net cash costs and gross profit per pound at our U.S. copper mines for the three months ended March 31, 2025 and 2024. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements. 
 
 Three Months Ended March 31, 
 2025 2024 
 By- Product Method Co-Product Method By- Product Method Co-Product Method 
 Copper Molyb- 
 denum a 
 Copper Molyb-
denum a 
 
 Revenues, excluding adjustments $ 4.60 $ 4.60 $ 20.16 $ 3.96 $ 3.96 $ 18.49 
 
 Site production and delivery, before net noncash 
 and other costs shown below 
 3.48 3.10 17.05 3.23 2.92 15.89 
 By-product credits (0.49) — — (0.38) — — 
 Treatment charges 0.12 0.11 — 0.13 0.13 — 
 Unit net cash costs 3.11 3.21 17.05 2.98 3.05 15.89 
 DD&A 0.40 0.36 1.28 0.34 0.31 1.23 
 
 Noncash and other costs, net 0.13 b 
 0.12 0.29 0.13 b 
 0.12 0.44 
 Total unit costs 3.64 3.69 18.62 3.45 3.48 17.56 
 Revenue adjustments, primarily for pricing 
 on prior period open sales 
 0.01 0.01 — — — — 
 Gross profit per pound $ 0.97 $ 0.92 $ 1.54 $ 0.51 $ 0.48 $ 0.93 
 
 Copper sales (millions of recoverable pounds) 307 307 333 333 
 Molybdenum sales (millions of recoverable pounds) a 
 8 7 

 a. Reflects sales of molybdenum produced by certain of our U.S. copper mines to our molybdenum sales company at market-based pricing. 
 b. Includes charges totaling $0.05 per pound of copper in both first-quarter 2025 and 2024 for feasibility and optimization studies. 
 
 Our U.S. copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) for our U.S. copper mines of $3.11 per pound of copper in first-quarter 2025 were higher than average unit net cash costs of $2.98 per pound in first-quarter 2024, primarily reflecting higher labor costs and lower copper volumes. 
 
 Because certain assets are depreciated on a straight-line basis, the average unit depreciation rate for our U.S. copper mines may vary with asset additions and the level of copper production and sales. 
 
 Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales. 
 
 Excluding potential tariff impacts, which continue to be assessed, we expect our average unit net cash costs (net of by-product credits) for our U.S. copper mines to trend lower during the remainder of 2025, compared to 2024 levels, reflecting the projected impact of efficiencies, improved volumes and cost reduction plans currently in progress. 
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 Excluding potential tariff impacts, which continue to be assessed, average unit net cash costs (net of by-product credits) for our U.S. copper mines are expected to approximate $3.02 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates, and assuming an average price of $20.00 per pound of molybdenum for the remainder of 2025. Our U.S. copper mines’ average unit net cash costs for the year 2025 would change by approximately $0.04 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2025. 
 
 South America 
 We manage two copper operations in South America – Cerro Verde in Peru (in which we own a 55.08% interest) and El Abra in Chile (in which we own a 51% interest), which are consolidated in our financial statements. 
 
 South America operations include open-pit mining, sulfide-ore concentrating, leaching and SX/EW facilities. Production from our South America operations is sold as copper concentrate or cathode under long-term contracts. 
 Our South America operations also sell a portion of their copper concentrate production to Atlantic Copper. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver. 
 
 Development Activities. At the El Abra operations in Chile, we have completed substantial drilling and evaluations to define a large sulfide resource that could support a potential major mill project similar to the large-scale concentrator at Cerro Verde. The estimated resource approximates 20 billion recoverable pounds of copper, which could result in the addition of 750 million pounds of copper production per year. We plan to submit an environmental impact statement by year-end 2025, subject to ongoing stakeholder engagement and economic evaluations. Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound. The decision on and timing of the potential project will take into account overall copper market conditions, required permitting and other factors. 
 
 Operating Data. Following is summary consolidated operating data for South America operations: 
 
 Three Months Ended March 31, 
 
 2025 2024 
 Copper (millions of recoverable pounds) 
 
 Production 271 280 
 Sales 275 284 
 Average realized price per pound $ 4.36 $ 3.94 
 
 Molybdenum (millions of recoverable pounds) 
 
 Production a 
 6 3 
 
 Leach operations 
 Leach ore placed in stockpiles (metric tons per day) 168,400 170,400 
 Average copper ore grade (%) 0.39 0.41 
 Copper production (millions of recoverable pounds) 77 71 
 
 Mill operations 
 Ore milled (metric tons per day) 411,300 397,200 
 Average ore grade (%): 
 Copper 0.30 0.33 
 Molybdenum 0.01 0.01 
 
 Copper recovery rate (%) 83.7 83.3 
 Copper production (millions of recoverable pounds) 194 209 

 a. Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde. 
 
 Our consolidated copper sales volumes from South America operations of 275 million pounds in first-quarter 2025 were lower than 284 million pounds in first-quarter 2024, primarily reflecting lower ore grades. Copper sales from South America operations are expected to approximate 1.1 billion pounds for the year 2025. Refer to “Outlook” for projected molybdenum sales volumes. 
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 Unit Net Cash Costs. We believe unit net cash costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 
 
 Gross Profit per Pound of Copper 
 The following table summarizes unit net cash costs and gross profit per pound of copper at our South America operations for the three months ended March 31, 2025 and 2024. Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America operations also had sales of molybdenum and silver. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements. 
 
 Three Months Ended March 31, 
 2025 2024 
 By-Product
Method Co-Product
Method By-Product
Method Co-Product
Method 
 Revenues, excluding adjustments $ 4.36 $ 4.36 $ 3.94 $ 3.94 
 
 Site production and delivery, before net noncash and other costs shown below 2.76 2.50 2.61 2.47 
 By-product credits (0.44) — (0.20) — 
 Treatment charges 0.07 0.07 0.18 0.18 
 Royalty on metals 0.01 0.01 0.01 0.01 
 Unit net cash costs 2.40 2.58 2.60 2.66 
 DD&A 0.40 0.36 0.39 0.36 
 
 Noncash and other costs, net 0.05 a 
 0.05 0.06 a 
 0.06 
 Total unit costs 2.85 2.99 3.05 3.08 
 Revenue adjustments, primarily for pricing on prior period open sales 0.22 0.22 — — 
 Gross profit per pound $ 1.73 $ 1.59 $ 0.89 $ 0.86 
 
 Copper sales (millions of recoverable pounds) 275 275 284 284 

 a. Includes charges totaling $0.05 per pound of copper in first-quarter 2025 and $0.04 per pound of copper in first-quarter 2024 for feasibility and optimization studies. 
 
 Our South America operations have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) for South America operations of $2.40 per pound of copper in first-quarter 2025 were lower than first-quarter 2024 average unit net cash costs of $2.60 per pound, primarily reflecting higher by-product credits and lower treatment charges, partly offset by lower copper volumes. 
 
 Revenues from Cerro Verde’s copper concentrate sales are recorded net of treatment charges, which will vary with Cerro Verde’s sales volumes and the price of copper. 
 
 Because certain assets are depreciated on a straight-line basis, South America’s unit depreciation rate may vary with asset additions and the level of copper production and sales. 
 
 Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales. 
 
 Average unit net cash costs (net of by-product credits) for our South America operations are expected to approximate $2.52 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates, and assuming an average price of $20.00 per pound of molybdenum for the remainder of 2025. 
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 Indonesia 
 PTFI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PTFI produces copper concentrate that contains significant quantities of gold and silver. We have a 48.76% ownership interest in PTFI and manage its operations. PTFI's results are consolidated in our financial statements. Once the full ramp-up of PTFI’s new downstream processing facilities is achieved, PTFI will be a fully integrated producer of refined copper and gold. 
 
 Concentrate Exports. On March 17, 2025, the Indonesia government granted PTFI a copper concentrate export license through September 16, 2025, for 1.4 million metric tons of copper concentrate, and PTFI re-commenced exports of copper concentrate. Pursuant to current regulations, PTFI is required to pay a 7.5% export duty on copper concentrate exports during 2025. 
 
 Export Proceeds. Effective March 1, 2025, the Indonesia government implemented a new regulation that requires 100% of export proceeds to be deposited in Indonesia banks for 12 months. The regulation allows the use of funds for ongoing business requirements, including dividends to shareholders, payment of taxes and other obligations to the Indonesia government, payment for materials or capital expenditures that are not available domestically and repayment of loans. Because PTFI has the ability to utilize its exports proceeds to fund business requirements, amounts deposited after March 1, 2025, are not considered restricted and are classified as cash and cash equivalents. 
 
 Long-Term Mining Rights. Pursuant to regulations issued during 2024, PTFI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage; domestic ownership of at least 51% and agreement with a state-owned enterprise for an additional 10% ownership; and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Mineral Resources. Application for extension may be submitted at any time up to one year prior to the expiration of PTFI’s special mining business license (IUPK). PTFI expects to apply for an extension during 2025, pending agreement with MIND ID on a purchase and sale agreement for the transfer in 2041 of an additional 10% interest in PTFI. 
 
 An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district. 
 
 Operating, Development and Exploration Activities. Over a multi-year investment period, PTFI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone (DMLZ) and Big Gossan) and related expansion of the milling facilities. In December 2024, PTFI completed construction of a new copper cleaner circuit, a mill recovery project to enhance recoveries and optimize concentrate production, with commissioning under way. PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.4 million ounces of gold per year and are among the lowest cost operations in the world. 
 
 PTFI is also conducting exploration in the Grasberg mineral district targeting the potential extension of significant mineralization below the DMLZ mine. 
 
 Kucing Liar. Long-term mine development activities are ongoing for PTFI’s Kucing Liar deposit in the Grasberg minerals district. Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PTFI’s operating rights beyond 2041 would extend the life of the project. Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe. Capital investments for Kucing Liar are estimated to total $4 billion over the next seven to eight years (averaging approximately $0.5 billion per annum). Approximately $0.7 billion has been incurred through March 31, 2025. At full operating rates, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PTFI with sustained long-term, large-scale and low-cost production. Kucing Liar will benefit from substantial shared infrastructure and PTFI’s experience and long-term success in block-cave mining. 
 
 Natural Gas Facilities . PTFI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PTFI’s greenhouse gas emissions at the Grasberg minerals district. The majority of PTFI’s planned investments in a new gas-fired combined cycle facility are expected to be incurred over the next three years at a cost of approximately $1 billion. Once complete, PTFI’s dual-fuel power plant and the new gas-fired 
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 combined cycle facility will be fueled by natural gas supplied by a floating liquefied natural gas storage and regassification unit. 
 
 PTFI’s New Downstream Processing Facilities. Repairs to PTFI’s new smelter in Eastern Java, Indonesia, following the October 2024 fire incident, are nearing completion. Startup activities are expected to re-commence in second-quarter 2025 with full ramp-up expected to be achieved by year-end 2025. 
 
 PTFI continues to ramp-up production at its newly commissioned PMR and the facility is expected to reach full capacity rates during 2025. The facility has capacity to refine all precious metals from PTFI’s new smelter as well as from PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia. 
 
 Operating Data. Following is summary consolidated operating data for Indonesia operations: 
 
 Three Months Ended March 31, 
 
 2025 2024 
 Copper (millions of recoverable pounds) 
 
 Production 296 491 
 Sales 290 493 
 Average realized price per pound $ 4.34 $ 3.92 
 
 Gold (thousands of recoverable ounces) 
 
 Production 284 545 
 Sales 125 564 
 Average realized price per ounce $ 3,072 $ 2,145 
 
 Ore extracted and milled (metric tons per day): 
 Grasberg Block Cave 93,600 139,300 
 DMLZ 60,400 67,300 
 Big Gossan 6,600 9,000 
 Other adjustments 1,000 3,900 
 
 Total 161,600 219,500 
 
 Average ore grades: 
 Copper (%) 1.11 1.31 
 Gold (grams per metric ton) 0.83 1.13 
 Recovery rates (%): 
 Copper 87.8 89.4 
 Gold 76.3 77.5 

 As expected, PTFI’s consolidated copper sales volumes of 290 million pounds and consolidated gold sales volumes of 125 thousand ounces in first-quarter 2025 were below first-quarter 2024 copper sales volumes of 493 million pounds and gold sales volumes of 564 thousand ounces, primarily reflecting a planned major maintenance project. Lower gold sales volumes in first-quarter 2025, compared to first-quarter 2024 gold sales volumes, were also impacted by lower ore grades and the timing of shipments. 
 
 Consolidated sales volumes from PTFI are expected to approximate 1.6 billion pounds of copper and 1.6 million ounces of gold for the year 2025. PTFI’s projected sales volumes in 2025 reflect reduced operating rates associated with planned major maintenance projects in its concentrating facilities. Projected sales volumes are dependent on operational performance; the ramp-up of PTFI’s new downstream processing facilities; weather-related conditions; and other factors detailed in the “Cautionary Statement” below. 
 
 Unit Net Cash Costs (Credits). We believe unit net cash costs (credits) per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 
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 Gross Profit per Pound of Copper and per Ounce of Gold 
 The following table summarizes the unit net cash costs (credits) and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the three months ended March 31, 2025 and 2024. Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in our consolidated financial statements. 
 
 Three Months Ended March 31, 
 2025 2024 
 By-Product Method Co-Product Method By-Product Method Co-Product Method 
 Copper Gold Copper Gold 
 Revenues, excluding adjustments $ 4.34 $ 4.34 $ 3,072 $ 3.92 $ 3.92 $ 2,145 
 
 Site production and delivery, before net noncash and other costs shown below 1.49 1.12 797 1.53 0.92 504 
 Gold, silver and other by-product credits (1.46) — — (2.55) — — 
 Treatment charges 0.19 0.15 102 0.35 0.21 116 
 Export duties 0.19 0.14 102 0.32 0.19 104 
 Royalty on metals 0.23 0.17 144 0.23 0.15 81 
 Unit net cash costs (credits) 0.64 1.58 1,145 (0.12) 1.47 805 
 DD&A 0.64 0.49 343 0.68 0.41 224 
 Noncash and other costs, net 0.34 a 
 0.25 179 0.05 b 
 0.03 16 
 Total unit costs 1.62 2.32 1,667 0.61 1.91 1,045 
 Revenue adjustments, primarily for pricing on prior period open sales 0.06 0.07 116 (0.01) (0.01) (14) 
 
 Gross profit per pound/ounce $ 2.78 $ 2.09 $ 1,521 $ 3.30 $ 2.00 $ 1,086 
 
 Copper sales (millions of recoverable pounds) 290 290 493 493 
 Gold sales (thousands of recoverable ounces) 125 564 

 a. Includes charges of $0.15 per pound of copper for operational readiness and startup costs associated with PTFI’s new downstream processing facilities, $0.08 per pound of copper related to the reversal of previously capitalized land lease costs at PTFI’s new downstream processing facilities, $0.08 per pound of copper for remediation costs related to the October 2024 fire incident at PTFI’s new smelter that were not offset by recovery under its construction insurance program and $0.02 per pound of copper for feasibility and optimization studies. These charges were partly offset by a credit of $0.04 per pound of copper related to asset retirement obligation adjustments. 
 b. Includes charges of $0.03 per pound of copper for operational readiness and startup costs associated with PTFI’s new downstream processing facilities and $0.01 per pound of copper for feasibility and optimization studies. These charges were partly offset by credits of $0.02 per pound of copper associated with adjustments to PTFI’s non-income tax provision. 
 
 A significant portion of PTFI’s costs are fixed and unit costs vary depending on volumes and other factors. PTFI’s unit net cash costs (net of gold, silver and other by-product credits) of $0.64 per pound of copper in first-quarter 2025 were unfavorable compared to unit net cash credits (including gold, silver and other by-product credits) of $0.12 per pound of copper in first-quarter 2024, primarily reflecting the impact of lower copper and gold volumes. 
 
 Treatment charges vary with the volume of metals sold and the price of copper, and royalties vary with the volume of metals sold and the prices of copper and gold. PTFI’s royalties totaled $66 million in first-quarter 2025 and $118 million in first-quarter 2024. 
 
 Export duties are assessed on PTFI’s copper concentrate sales at a rate of 7.5% and totaled $55 million in first-quarter 2025 and $156 million in first-quarter 2024. 
 
 Because certain assets are depreciated on a straight-line basis, PTFI’s unit depreciation rate may vary with asset additions and the level of copper volumes and changes in copper and gold inventory. 
 
 Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales. 
 
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 For the remainder of 2025, PTFI’s copper and gold production and sales volumes are expected to increase, which is expected to result in a significant reduction to PTFI's average unit net cash costs (net of gold, silver and other by-product credits), compared to first-quarter 2025 levels. 
 
 Average unit net cash credits (including gold, silver and other by-product credits) for PTFI are expected to approximate $0.47 per pound of copper for the year 2025, based on achievement of current sales volumes and cost estimates, and assuming an average price of $3,000 per ounce of gold for the remainder of 2025. PTFI’s average unit net cash credits for the year 2025 would change by approximately $0.09 per pound of copper for each $100 per ounce change in the average price of gold for the remainder of 2025. 
 
 PTFI’s projected production and sales volumes and unit net cash credits for the year 2025 are dependent on operational performance; the ramp-up of PTFI’s new downstream processing facilities; weather-related conditions; and other factors. Refer to “Cautionary Statement” below, and Item 1A. “Risk Factors” contained in Part I of our 2024 Form 10-K for further discussion of factors that could cause results to differ materially from projections. 
 
 Molybdenum Mines 
 We operate two wholly owned primary molybdenum operations in Colorado – the Climax open-pit mine and the Henderson underground mine. The Climax and Henderson mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Climax and Henderson mines and at our U.S. copper mines and South America operations, is processed at our conversion facilities. 
 
 Operating and Development Activities. Production from the Molybdenum mines totaled 9 million pounds of molybdenum in first-quarter 2025 and 8 million pounds in first-quarter 2024. Refer to “Consolidated Results” for our consolidated molybdenum operating data, which includes sales of molybdenum produced at our primary molybdenum operations and from our U.S. copper mines and South America operations. Refer to “Outlook” for projected consolidated molybdenum sales volumes and to “Markets” for a discussion of molybdenum prices. 
 
 Unit Net Cash Costs Per Pound of Molybdenum. We believe unit net cash costs per pound of molybdenum is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 
 
 Average unit net cash costs for our Molybdenum mines of $13.72 per pound of molybdenum in first-quarter 2025 were lower than average unit net cash costs of $15.80 per pound in first-quarter 2024, primarily reflecting higher volumes and lower contract labor costs. Based on achievement of current sales volumes and cost estimates, average unit net cash costs for the Molybdenum mines are expected to increase to approximately $15.17 per pound of molybdenum for the year 2025, reflecting the impact of higher mine development costs. Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements. 
 
 Smelting and Refining 
 Through our downstream integration, we are able to assure placement of a significant portion of our copper concentrate production. PTFI wholly owns and operates PTFI’s new downstream processing facilities in Eastern Java, Indonesia, and has a 66% ownership interest in PT Smelting (39.5% prior to June 30, 2024), which is operated by Mitsubishi Materials Corporation. We wholly own and operate the Miami smelter in Arizona, the El Paso refinery in Texas, and Atlantic Copper smelter and refinery in Huelva, Spain. 
 
 PTFI’s new smelter will smelt and refine copper concentrate from PTFI and the PMR will process anode slimes from the new smelter and PT Smelting. Once PTFI’s new downstream processing facilities are operational, PTFI’s operations will be fully integrated and treatment charges reflecting the cost of smelting and refining operations will be recorded in production and delivery costs. PTFI recorded charges for operational readiness and startup costs associated with PTFI’s new downstream processing facilities totaling $44 million in first-quarter 2025 and $15 million in first-quarter 2024. We estimate that operational readiness and startup costs associated with PTFI’s new downstream processing facilities will approximate $100 million for the year 2025. 
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 The Miami smelter has been operating for over 100 years and has been upgraded numerous times during that period to implement new technologies, improve production and comply with air quality requirements. We performed a major maintenance turnaround for the Miami smelter in first-quarter 2025 and incurred $73 million in maintenance charges and idle facility costs. 
 
 Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. In first-quarter 2025, Atlantic Copper’s copper concentrate purchases included 21% from our copper mining operations and 79% from third parties. Atlantic Copper’s treatment charges, which consist of a base rate per pound of copper and per ounce of gold, are generally fixed and represent a cost to our mining operations and income to Atlantic Copper ( i.e. , higher treatment charges benefit our Atlantic Copper operations). Our U.S. copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery. 
 
 We defer recognizing profits on sales from our mining operations to Atlantic Copper until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $114 million ($34 million to net income attributable to common stock) in first-quarter 2025 and $(17) million ($(5) million to net income attributable to common stock) in first-quarter 2024. Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $85 million ($33 million to net income attributable to common stock) at March 31, 2025. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in our net deferred profits and quarterly earnings. 
 
 CAPITAL RESOURCES AND LIQUIDITY 
 
 Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. 
 
 We remain focused on managing costs efficiently and continue to advance several important value-enhancing initiatives. We believe the actions we have taken in recent years to build a solid balance sheet, successfully expand low-cost operations and maintain flexible organic growth options while maintaining sufficient liquidity, will allow us to continue to execute our business plans in a prudent manner during periods of economic uncertainty while preserving substantial future asset values. We closely monitor market conditions and will adjust our operating plans to protect liquidity and preserve our asset values, if necessary. We expect to maintain a strong balance sheet and liquidity position as we focus on building long-term value in our business, executing our operating plans safely, responsibly and efficiently, and prudently managing costs and capital expenditures. 
 
 Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”) and based on current sales volume, cost and metal price estimates and planned capital expenditures discussed in “Outlook,” our available cash and cash equivalents plus our projected consolidated operating cash flows of $7.0 billion for the year 2025 exceed our expected consolidated capital expenditures of $5.0 billion. 
 
 We have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next twelve months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable) and any share or debt repurchases. Planned capital expenditures for major mining projects over the next few years are primarily associated with underground mine development in the Grasberg minerals district and potential expansion projects in the U.S. At March 31, 2025, we had $4.4 billion in consolidated cash and cash equivalents ($4.6 billion including $0.3 billion of current restricted cash associated with a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks), and FCX, PTFI and Cerro Verde have $3.0 billion, $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities. 
 
 Financial Policy. Our financial policy is aligned with our strategic objectives of maintaining a strong balance sheet, providing cash returns to shareholders and advancing opportunities for future growth. The policy includes a base dividend and a performance-based payout framework, whereby up to 50% of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to us maintaining our net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding debt for PTFI’s new downstream processing facilities). Our Board of Directors (Board) reviews the structure of the performance-based payout framework at least annually. 
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 At March 31, 2025, our net debt, excluding $3.2 billion of debt for PTFI’s new downstream processing facilities, totaled $1.5 billion. Refer to "Net Debt" for further discussion. 
 
 On March 26, 2025, our Board declared cash dividends totaling $0.15 per share on our common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which were paid on May 1, 2025, to common shareholders of record as of April 15, 2025. Based on current market conditions, the base and variable dividends on our common stock are anticipated to total $0.60 per share for 2025 (including the dividends paid on February 1, 2025, and May 1, 2025), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend. 
 
 As of April 30, 2025, we acquired a total of 51 million shares ($38.50 average cost per share), have $3.0 billion available under our share repurchase program and we had 1.4 billion shares of common stock outstanding. Refer to Note 4 for further discussion. 
 
 The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at our Board’s discretion. 
 
 Cash 
 Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes at March 31, 2025 (in billions): 
 
 Cash at domestic companies $ 1.3 
 Cash at international operations 3.1 
 
 Total consolidated cash and cash equivalents 4.4 
 
 Noncontrolling interests’ share (1.5) 
 Cash, net of noncontrolling interests’ share 2.9 
 Withholding taxes (0.1) 
 
 Net cash available $ 2.8 

 Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayments, working capital or other cash needs. Management believes that sufficient liquidity is available in the U.S. from cash balances and availability from our revolving credit facility. We elected to not permanently reinvest earnings from our foreign subsidiaries, and we recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. From time to time, our foreign subsidiaries distribute earnings to the U.S. through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share. 
 
 Debt 
 At March 31, 2025, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%. Substantially all of our outstanding debt is fixed rate. Our next senior note maturities are in 2027. Our total debt has an average remaining duration of approximately nine years. Refer to Note 4 for further discussion of debt. 
 
 Operating Activities 
 We generated operating cash flows of $1.1 billion (net of $0.3 billion of working capital and other uses) in first-quarter 2025 and $1.9 billion (net of $0.1 billion of working capital and other uses) in first-quarter 2024. Lower operating cash flows in first-quarter 2025, compared with first-quarter 2024, primarily reflect lower copper and gold sales volumes impacted by a planned major maintenance project in Indonesia. Lower gold sales volumes also reflect lower ore grades and the timing of shipments. These lower volumes were partly offset by the impact of higher average realized copper and gold prices. Refer to "Consolidated Results" and "Operations" for further discussion. 
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 Investing Activities 
 Capital Expenditures. Capital expenditures, including capitalized interest, totaled $1.2 billion in first-quarter 2025 and $1.3 billion in first-quarter 2024. Capital expenditures include amounts for major mining projects ($0.6 billion in first-quarter 2025 and $0.4 billion in first quarter 2024), primarily associated with underground development activities in the Grasberg minerals district, and for PTFI’s new downstream processing facilities ($0.2 billion in first-quarter 2025 and $0.5 billion in first-quarter 2024.) 
 
 Financing Activities 
 Debt Transactions. Net proceeds from debt totaled $452 million in first-quarter 2025, primarily related to short-term lines of credit at Atlantic Copper. 
 
 Cash Dividends on Common Stock. We paid cash dividends on our common stock totaling $0.2 billion in each of first-quarter 2025 and first-quarter 2024. Refer to Note 4, Item 1A. “Risk Factors” contained in Part I of our 2024 Form 10-K, “Cautionary Statement” below and the discussion of our financial policy above. 
 
 Cash Dividends and Distributions Paid to Noncontrolling Interests. There were no cash dividends and distributions paid to noncontrolling interests at our international operations in first-quarter 2025. Cash dividends and distributions paid to noncontrolling interests at PTFI totaled $0.1 billion in first-quarter 2024. Cash dividends and distributions to noncontrolling interests vary based on the operating results and cash requirements of our consolidated subsidiaries. 
 
 Treasury Stock Purchases. In first-quarter 2025, we acquired 1.4 million shares of our common stock for a total cost of $55 million. Refer to Note 4 for further discussion. 
 
 CONTRACTUAL OBLIGATIONS 
 
 There have been no material changes in our contractual obligations since December 31, 2024. Refer to Note 11 and Part II, Items 7. and 7A. in our 2024 Form 10-K for information regarding our contractual obligations. 
 
 CONTINGENCIES 
 
 Environmental Obligations and Asset Retirement Obligations (ARO) 
 Our current and historical operating activities are subject to various environmental laws and regulations. We perform a comprehensive annual review of our environmental obligations and AROs and also review changes in facts and circumstances associated with these obligations at least quarterly. 
 
 There have been no significant changes to our environmental liabilities and AROs since December 31, 2024. Refer to Note 10 of our 2024 Form 10-K for further information about contingencies associated with environmental matters and AROs. 
 
 Litigation and Other Contingencies 
 There have been no significant updates to our contingencies associated with legal proceedings, environmental and other matters since December 31, 2024, other than as disclosed in Note 7. Refer to Note 10 and “Legal Proceedings” contained in Part I, Item 3. of our 2024 Form 10-K, as updated by Note 7, for further information regarding litigation and other contingencies. 
 
 NEW ACCOUNTING STANDARDS 
 
 There were no significant updates to previously reported accounting standards included in Note 1 of our 2024 Form 10-K. 
 
 CRITICAL ACCOUNTING ESTIMATES 
 
 MD&A is based on our consolidated financial statements, which have been prepared in conformity with U.S. GAAP. The preparation of these statements requires that we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on historical experience and on assumptions that we consider reasonable under the circumstances; however, reported results could differ from those based on the current estimates under different assumptions or conditions. For a description of our critical accounting estimates that require us to make the most difficult, subjective or complex judgments, refer to our 2024 Form 10-K. We have not changed any of these policies from those previously disclosed in that report. 
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 NET DEBT 
 
 We believe that net debt provides investors with information related to the performance-based payout framework in our financial policy, which requires us to maintain our net debt at a level not to exceed the net debt target of $3 billion to $4 billion (excluding project debt for PTFI’s new downstream processing facilities). We define net debt as consolidated debt less (i) consolidated cash and cash equivalents and (ii) current restricted cash associated with a portion of PTFI's export proceeds. This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt, which may not be comparable to similarly titled measures reported by other companies, follows (in millions): 
 
 As of March 31, 2025 
 
 Current portion of debt $ 495 
 Long-term debt, less current portion 8,909 
 Consolidated debt 9,404 
 Less: consolidated cash and cash equivalents 4,385 
 Less: current restricted cash associated with PTFI’s export proceeds 252 a 
 
 FCX net debt 4,767 
 Less: debt for PTFI’s new downstream processing facilities 3,233 b 
 
 FCX net debt, excluding debt for PTFI’s new downstream processing facilities $ 1,534 
 
 a. Represents a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation. As the 90-day holding period is the only restriction on the cash, we included such amount in the calculation of net debt. Refer to Note 7 for further discussion. 
 b. Represents PTFI’s senior notes and $250 million of borrowings under PTFI’s revolving credit facility. 
 
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 PRODUCT REVENUES AND PRODUCTION COSTS 
 
 Mining Product Revenues and Unit Net Cash Costs (Credits) 
 We believe unit net cash costs (credits) per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies. 
 
 We present gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce and (iv) it is the method used by our management and Board to monitor our mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change. 
 
 We show revenue adjustments for prior period open sales as a separate line item. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs, net which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as ARO accretion and other adjustments, inventory write-offs and adjustments, stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, operational readiness and startup costs, restructuring and/or unusual charges. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements. 
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 United States Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs 
 
 Three Months Ended March 31, 2025 
 (In millions) By-Product Co-Product Method 
 Method Copper Molybdenum a 
 Other b 
 Total 
 Revenues, excluding adjustments $ 1,414 $ 1,414 $ 155 $ 41 $ 1,610 
 Site production and delivery, before net noncash
 and other costs shown below 1,070 952 131 34 1,117 
 By-product credits (150) — — — — 
 Treatment charges 37 35 — 2 37 
 Net cash costs 957 987 131 36 1,154 
 DD&A 124 112 10 2 124 
 
 Noncash and other costs, net 39 c 
 37 2 — 39 
 Total costs 1,120 1,136 143 38 1,317 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 4 4 — 1 5 
 Gross profit $ 298 $ 282 $ 12 $ 4 $ 298 
 
 Copper sales (millions of recoverable pounds) 307 307 
 Molybdenum sales (millions of recoverable pounds) a 
 8 
 
 Gross profit per pound of copper/molybdenum: 
 
 Revenues, excluding adjustments $ 4.60 $ 4.60 $ 20.16 
 Site production and delivery, before net noncash 
 and other costs shown below 3.48 3.10 17.05 
 By-product credits (0.49) — — 
 Treatment charges 0.12 0.11 — 
 Unit net cash costs 3.11 3.21 17.05 
 DD&A 0.40 0.36 1.28 
 
 Noncash and other costs, net 0.13 c 
 0.12 0.29 
 Total unit costs 3.64 3.69 18.62 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 0.01 0.01 — 
 Gross profit per pound $ 0.97 $ 0.92 $ 1.54 
 
 Reconciliation to Amounts Reported 
 
 Revenues Production and Delivery DD&A 
 Totals presented above $ 1,610 $ 1,117 $ 124 
 Treatment charges (4) 33 — 
 Noncash and other costs, net — 39 — 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 5 — — 
 Eliminations and other 19 23 — 
 U.S. copper mines 1,630 1,212 124 
 Other mining d 
 5,510 3,844 331 
 
 Corporate, other & eliminations (1,412) (1,300) 11 
 As reported in our consolidated financial statements $ 5,728 $ 3,756 $ 466 
 
 a. Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. 
 b. Includes gold and silver product revenues and production costs. 
 c. Includes charges totaling $14 million ($0.05 per pound of copper) for feasibility and optimization studies. 
 d. Represents the combined total for our other mining operations as presented in Note 8. 
 
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 United States Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs 
 
 Three Months Ended March 31, 2024 
 (In millions) By-Product Co-Product Method 
 Method Copper Molybdenum a 
 Other b 
 Total 
 Revenues $ 1,316 $ 1,316 $ 136 $ 39 $ 1,491 
 Site production and delivery, before net noncash
 and other costs shown below 1,074 973 116 32 1,121 
 By-product credits (128) — — — — 
 Treatment charges 44 42 — 2 44 
 Net cash costs 990 1,015 116 34 1,165 
 DD&A 111 101 9 1 111 
 
 Noncash and other costs, net 45 c 
 41 4 — 45 
 Total costs 1,146 1,157 129 35 1,321 
 
 Gross profit $ 170 $ 159 $ 7 $ 4 $ 170 
 
 Copper sales (millions of recoverable pounds) 333 333 
 Molybdenum sales (millions of recoverable pounds) a 
 7 
 
 Gross profit per pound of copper/molybdenum: 
 
 Revenues $ 3.96 $ 3.96 $ 18.49 
 Site production and delivery, before net noncash
 and other costs shown below 3.23 2.92 15.89 
 By-product credits (0.38) — — 
 Treatment charges 0.13 0.13 — 
 Unit net cash costs 
 2.98 3.05 15.89 
 DD&A 0.34 0.31 1.23 
 
 Noncash and other costs, net 0.13 c 
 0.12 0.44 
 Total unit costs 
 3.45 3.48 17.56 
 
 Gross profit per pound $ 0.51 $ 0.48 $ 0.93 
 
 Reconciliation to Amounts Reported 
 Revenues Production and Delivery DD&A 
 Totals presented above $ 1,491 $ 1,121 $ 111 
 Treatment charges (3) 41 — 
 Noncash and other costs, net — 45 — 
 
 Eliminations and other 14 17 1 
 U.S. copper mines 1,502 1,224 112 
 Other mining d 
 6,278 3,890 467 
 
 Corporate, other & eliminations (1,459) (1,270) 16 
 As reported in our consolidated financial statements $ 6,321 $ 3,844 $ 595 
 
 a. Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. 
 b. Includes gold and silver product revenues and production costs. 
 c. Includes charges totaling $15 million ($0.05 per pound of copper) for feasibility studies. 
 d. Represents the combined total for our other mining operations as presented in Note 8. 
 
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 South America Operations Product Revenues, Production Costs and Unit Net Cash Costs 
 
 Three Months Ended March 31, 2025 
 (In millions) By-Product Co-Product Method 
 Method Copper Other a 
 Total 
 Revenues, excluding adjustments $ 1,199 $ 1,199 $ 135 $ 1,334 
 Site production and delivery, before net noncash
 and other costs shown below 759 688 87 775 
 By-product credits (121) — — — 
 Treatment charges 19 19 — 19 
 Royalty on metals 2 2 — 2 
 Net cash costs 659 709 87 796 
 DD&A 111 99 12 111 
 
 Noncash and other costs, net 14 b 
 14 — 14 
 Total costs 784 822 99 921 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 60 60 2 62 
 Gross profit $ 475 $ 437 $ 38 $ 475 
 
 Copper sales (millions of recoverable pounds) 275 275 
 
 Gross profit per pound of copper: 
 
 Revenues, excluding adjustments $ 4.36 $ 4.36 
 Site production and delivery, before net noncash
 and other costs shown below 2.76 2.50 
 By-product credits (0.44) — 
 Treatment charges 0.07 0.07 
 Royalty on metals 0.01 0.01 
 Unit net cash costs 2.40 2.58 
 DD&A 0.40 0.36 
 
 Noncash and other costs, net 0.05 b 
 0.05 
 Total unit costs 2.85 2.99 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 0.22 0.22 
 Gross profit per pound $ 1.73 $ 1.59 
 
 Reconciliation to Amounts Reported 
 Production 
 Revenues and Delivery DD&A 
 Totals presented above $ 1,334 $ 775 $ 111 
 Treatment charges (19) — — 
 Royalty on metals (2) — — 
 Noncash and other costs, net — 14 — 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 62 — — 
 Eliminations and other 1 (1) — 
 South America operations 1,376 788 111 
 Other mining c 
 5,764 4,268 344 
 
 Corporate, other & eliminations (1,412) (1,300) 11 
 As reported in our consolidated financial statements $ 5,728 $ 3,756 $ 466 
 
 a. Includes silver sales of 0.8 million ounces ($33.79 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. 
 b. Includes charges totaling $15 million ($0.05 per pound of copper) for feasibility and optimization studies. 
 c. Represents the combined total for our other mining operations as presented in Note 8. 
 
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 South America Operations Product Revenues, Production Costs and Unit Net Cash Costs 
 
 Three Months Ended March 31, 2024 
 (In millions) By-Product Co-Product Method 
 Method Copper Other a 
 Total 
 Revenues, excluding adjustments $ 1,119 $ 1,119 $ 70 $ 1,189 
 Site production and delivery, before net noncash
 and other costs shown below 743 703 53 756 
 By-product credits (57) — — — 
 Treatment charges 50 50 — 50 
 Royalty on metals 2 2 — 2 
 Net cash costs 738 755 53 808 
 DD&A 108 101 7 108 
 
 Noncash and other costs, net 18 b 
 18 — 18 
 Total costs 864 874 60 934 
 Other revenue adjustments, primarily for pricing
 on prior period open sales (1) — (1) (1) 
 Gross profit $ 254 $ 245 $ 9 $ 254 
 
 Copper sales (millions of recoverable pounds) 284 284 
 
 Gross profit per pound of copper: 
 
 Revenues, excluding adjustments $ 3.94 $ 3.94 
 Site production and delivery, before net noncash
 and other costs shown below 2.61 2.47 
 By-product credits (0.20) — 
 Treatment charges 0.18 0.18 
 Royalty on metals 0.01 0.01 
 Unit net cash costs 2.60 2.66 
 DD&A 0.39 0.36 
 
 Noncash and other costs, net 0.06 b 
 0.06 
 Total unit costs 3.05 3.08 
 Other revenue adjustments, primarily for pricing
 on prior period open sales — — 
 Gross profit per pound $ 0.89 $ 0.86 
 
 Reconciliation to Amounts Reported 
 Production 
 Revenues and Delivery DD&A 
 Totals presented above $ 1,189 $ 756 $ 108 
 Treatment charges (50) — — 
 Royalty on metals (2) — — 
 Noncash and other costs, net — 18 — 
 Other revenue adjustments, primarily for pricing
 on prior period open sales (1) — — 
 Eliminations and other — (1) — 
 South America operations 1,136 773 108 
 Other mining c 
 6,644 4,341 471 
 
 Corporate, other & eliminations (1,459) (1,270) 16 
 As reported in our consolidated financial statements $ 6,321 $ 3,844 $ 595 
 
 a. Includes silver sales of 0.8 million ounces ($24.45 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. 
 b. Includes charges totaling $11 million ($0.04 per pound of copper) for feasibility studies. 
 c. Represents the combined total for our other mining operations as presented in Note 8. 
 
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 Indonesia Operations Product Revenues, Production Costs and Unit Net Cash Costs 
 
 Three Months Ended March 31, 2025 
 (In millions) Co-Product Method 
 By-Product Method Copper Gold Silver & Other a 
 Total 
 Revenues, excluding adjustments $ 1,258 $ 1,258 $ 385 $ 21 $ 1,664 
 Site production and delivery, before net noncash
 and other costs shown below 432 326 100 6 432 
 Gold, silver and other by-product credits (422) — — — — 
 Treatment charges 56 42 13 1 56 
 Export duties 55 42 12 1 55 
 Royalty on metals 66 48 18 — 66 
 Net cash costs 187 458 143 8 609 
 DD&A 186 141 43 2 186 
 
 Noncash and other costs, net 97 b 
 73 23 1 97 
 Total costs 470 672 209 11 892 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 19 19 15 1 35 
 
 Gross profit $ 807 $ 605 $ 191 $ 11 $ 807 
 
 Copper sales (millions of recoverable pounds) 290 290 
 Gold sales (thousands of recoverable ounces) 125 
 
 Gross profit per pound of copper/per ounce of gold: 
 
 Revenues, excluding adjustments $ 4.34 $ 4.34 $ 3,072 
 Site production and delivery, before net noncash
 and other costs shown below 1.49 1.12 797 
 Gold, silver and other by-product credits (1.46) — — 
 Treatment charges 0.19 0.15 102 
 Export duties 0.19 0.14 102 
 Royalty on metals 0.23 0.17 144 
 Unit net cash costs 0.64 1.58 1,145 
 DD&A 0.64 0.49 343 
 
 Noncash and other costs, net 0.34 b 
 0.25 179 
 Total unit costs 1.62 2.32 1,667 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 0.06 0.07 116 
 
 Gross profit per pound/ounce $ 2.78 $ 2.09 $ 1,521 
 
 Reconciliation to Amounts Reported 
 Production 
 Revenues and Delivery DD&A 
 Totals presented above $ 1,664 $ 432 $ 186 
 Treatment charges (8) 48 c 
 — 
 Export duties (55) — — 
 Royalty on metals (66) — — 
 Noncash and other costs, net — 97 — 
 Other revenue adjustments, primarily for pricing
 on prior period open sales 35 — — 
 
 Eliminations and other — 1 — 
 Indonesia operations 1,570 578 186 
 Other mining d 
 5,570 4,478 269 
 
 Corporate, other & eliminations (1,412) (1,300) 11 
 As reported in our consolidated financial statements $ 5,728 $ 3,756 $ 466 
 
 a. Includes silver sales of 0.4 million ounces ($34.05 per ounce average realized price). 
 b. Includes charges totaling $44 million ($0.15 per pound of copper) for operational readiness and startup costs associated with PTFI’s new downstream processing facilities, $24 million ($0.08 per pound of copper) related to the reversal of previously capitalized land lease costs at PTFI’s new downstream processing facilities, $23 million ($0.08 per pound of copper) of remediation costs for PTFI’s new smelter that were not offset by recovery under construction insurance programs and $6 million ($0.02 per pound of copper) for feasibility and optimization studies. These charges were partly offset by a credit of $11 million ($0.04 per pound of copper) related to ARO adjustments. 
 c. Represents tolling costs paid to PT Smelting. 
 d. Represents the combined total for our other mining operations as presented in Note 8. 
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 Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs 
 
 Three Months Ended March 31, 2024 
 (In millions) Co-Product Method 
 By-Product Method Copper Gold Silver & Other a 
 Total 
 Revenues, excluding adjustments $ 1,938 $ 1,938 $ 1,209 $ 56 $ 3,203 
 Site production and delivery, before net noncash
 and other costs shown below 753 456 284 13 753 
 Gold, silver and other by-product credits (1,257) — — — — 
 Treatment charges 173 105 65 3 173 
 Export duties 156 94 59 3 156 
 Royalty on metals 118 70 46 2 118 
 Net cash (credits) costs (57) 725 454 21 1,200 
 DD&A 335 203 126 6 335 
 Noncash and other costs, net 23 b 
 14 9 — 23 
 Total costs 301 942 589 27 1,558 
 Other revenue adjustments, primarily for pricing
 on prior period open sales (7) (7) (7) (1) (15) 
 
 Gross profit $ 1,630 $ 989 $ 613 $ 28 $ 1,630 
 
 Copper sales (millions of recoverable pounds) 493 493 
 Gold sales (thousands of recoverable ounces) 564 
 
 Gross profit per pound of copper/per ounce of gold: 
 
 Revenues, excluding adjustments $ 3.92 $ 3.92 $ 2,145 
 Site production and delivery, before net noncash
 and other costs shown below 1.53 0.92 504 
 Gold, silver and other by-product credits (2.55) — — 
 Treatment charges 0.35 0.21 116 
 Export duties 0.32 0.19 104 
 Royalty on metals 0.23 0.15 81 
 Unit net cash (credits) costs (0.12) 1.47 805 
 DD&A 0.68 0.41 224 
 Noncash and other costs, net 0.05 b 
 0.03 16 
 Total unit costs 0.61 1.91 1,045 
 Other revenue adjustments, primarily for pricing
 on prior period open sales (0.01) (0.01) (14) 
 
 Gross profit per pound/ounce $ 3.30 $ 2.00 $ 1,086 
 
 Reconciliation to Amounts Reported 
 Production 
 Revenues and Delivery DD&A 
 Totals presented above $ 3,203 $ 753 $ 335 
 Treatment charges (89) 84 c 
 — 
 Export duties (156) — — 
 Royalty on metals (118) — — 
 Noncash and other costs, net — 23 — 
 Other revenue adjustments, primarily for pricing
 on prior period open sales (15) — — 
 
 Eliminations and other — 1 — 
 Indonesia operations 2,825 861 335 
 Other mining d 
 4,955 4,253 244 
 
 Corporate, other & eliminations (1,459) (1,270) 16 
 As reported in our consolidated financial statements $ 6,321 $ 3,844 $ 595 
 
 a. Includes silver sales of 2.1 million ounces ($23.90 per ounce average realized price). 
 b. Includes charges totaling $15 million ($0.03 per pound of copper) for operational readiness and startup costs associated with PTFI’s new downstream processing facilities and $7 million ($0.01 per pound of copper) for feasibility and optimization studies. These charges were partly offset by credits of $8 million ($0.02 per pound of copper) associated with adjustments to PTFI’s non-income tax provision. 
 c. Represents tolling costs paid to PT Smelting. 
 d. Represents the combined total for our other mining operations as presented in Note 8. 
 
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 Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs 
 
 Three Months Ended March 31, 
 (In millions) 2025 2024 
 
 Revenues, excluding adjustments a 
 $ 186 $ 152 
 Site production and delivery, before net noncash
 and other costs shown below 116 116 
 Treatment charges and other 9 7 
 Net cash costs 125 123 
 DD&A 26 16 
 
 Noncash and other costs, net 6 
 
 3 
 Total costs 157 142 
 Gross profit $ 29 $ 10 
 
 Molybdenum sales (millions of recoverable pounds) a 
 9 8 
 
 Gross profit per pound of molybdenum: 
 
 Revenues, excluding adjustments a 
 $ 20.32 $ 19.47 
 Site production and delivery, before net noncash
 and other costs shown below 12.70 14.94 
 Treatment charges and other 1.02 0.86 
 Unit net cash costs 13.72 15.80 
 DD&A 2.83 2.08 
 
 Noncash and other costs, net 0.62 
 
 0.33 
 Total unit costs 17.17 18.21 
 Gross profit per pound $ 3.15 $ 1.26 
 
 Reconciliation to Amounts Reported 
 Production 
 Three Months Ended March 31, 2025 Revenues and Delivery DD&A 
 Totals presented above $ 186 $ 116 $ 26 
 Treatment charges and other (9) — — 
 Noncash and other costs, net — 6 — 
 Molybdenum mines 177 122 26 
 Other mining b 
 6,963 4,934 429 
 
 Corporate, other & eliminations (1,412) (1,300) 11 
 As reported in our consolidated financial statements $ 5,728 $ 3,756 $ 466 
 
 Three Months Ended March 31, 2024 
 Totals presented above $ 152 $ 116 $ 16 
 Treatment charges and other (7) — — 
 Noncash and other costs, net — 3 — 
 
 Molybdenum mines 145 119 16 
 Other mining b 
 7,635 4,995 563 
 
 Corporate, other & eliminations (1,459) (1,270) 16 
 As reported in our consolidated financial statements $ 6,321 $ 3,844 $ 595 
 
 a. Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. 
 b. Represents the combined total for our other mining operations as presented in Note 8. Also includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the U.S. copper mines and South America operations. 
 
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 CAUTIONARY STATEMENT 
 
 Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to business outlook, strategy, goals or targets, and the underlying assumptions and estimated impacts on our business and stakeholders related thereto; global market conditions, including trade policies; ore grades and milling rates; production and sales volumes; unit net cash costs (credits) and operating costs; capital expenditures; operating plans, including mine sequencing; cash flows; liquidity; PTFI’s remediation, commissioning and full ramp-up of its new smelter and full production and ramp-up at the PMR; potential extension of PTFI’s IUPK beyond 2041; export licenses, export duties and export volumes, including PTFI’s ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia; timing of shipments of inventoried production; our sustainability-related commitments and targets; our overarching commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; achievement of our 2030 climate targets and our 2050 net zero aspiration; improvements in operating procedures and technology innovations and applications; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; mineral reserve and mineral resource estimates; final resolution of settlements associated with ongoing legal and environmental proceedings; debt repurchases; and the ongoing implementation of our financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential,” “assumptions,” “guidance,” “aspirations,” “future,” “commitments,” “pursues,” “initiatives,” “objectives,” “opportunities,” “strategy” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable), and timing and amount of any share repurchases are at the discretion of our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, our financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. 
 
 We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities we produce, primarily copper and gold; PTFI’s ability to export and sell or inventory copper concentrates through remediation and full ramp-up of its new smelter in Indonesia; changes in export duties and tariff rates; completion of remediation activities and achieving full ramp-up of the new smelter in Indonesia; full production and ramp-up at the PMR; production rates; timing of shipments; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions, including market volatility regarding trade policies and tariff uncertainty; reductions in liquidity and access to capital; changes in tax laws and regulations; political and social risks, including the potential effects of violence in Indonesia, civil unrest in Peru, and relations with local communities and Indigenous Peoples; operational risks inherent in mining, with higher inherent risks in underground mining; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PTFI’s IUPK to extend mining rights from 2031 through 2041; process relating to the extension of PTFI’s IUPK beyond 2041; cybersecurity risks; any major public health crisis; labor relations, including labor-related work stoppages and increased costs; compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks, including availability of secure water supplies; impacts, expenses or results from litigation or investigations; tailings management; our ability to comply with our responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K. 
 
 Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs or technological solutions and innovations, some aspects of which we may not be able to control. Further, we may make changes to our business plans that could 
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 affect our results. We undertake no obligation to update any forward-looking statements, which are as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. 
 
 This report on Form 10-Q also contains measures such as net debt and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. GAAP. Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash Costs (Credits)” for further discussion of unit net cash costs (credits) associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements. Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents, and current restricted cash associated with PTFI’s export proceeds to net debt. For forward-looking unit net cash costs (credits) per pound of copper and molybdenum measures, we are unable to provide a reconciliation to the most comparable GAAP measure without unreasonable effort because estimating such GAAP measures and providing a meaningful reconciliation is extremely difficult and requires a level of precision that is unavailable for these future periods, and the information needed to reconcile these measures is dependent upon future events, many of which are outside of our control as described above. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
FREEPORT-MCMORAN INC 10-Q

Item 2. Management’s Discussion and Analysis
